Received: 29 August 2020 Revised: 11 June 2021 Accepted: 26 June 2021

DOI: 10.1002/csr.2174

RESEARCH ARTICLE

Impact of social responsibility disclosure between

implementation of green accounting and sustainable
development: A study on heavily polluting companies
in Bangladesh

Bablu Kumar Dhar1,2 | Sabrina Maria Sarkar3 | Foster K. Ayittey4

1
Department of Business, Daffodil
International University, Dhaka, Bangladesh Abstract
2
Department of International Trade and Based on the empirical data of heavily polluting companies in Bangladesh from 2010
Economics, Yantai University, Shandong, China
to 2019, this paper conducts an empirical analysis of the application effect of green
3
YWCA, Chittagong, Bangladesh
4
accounting in the sustainable development of heavily polluting companies. Among
Curtin Malaysia Research Institute, Curtin
University, Miri, Malaysia 212 listed companies under Dhaka Stock Exchange, the study discovered that the
effective implementation of green accounting has significantly improved the sustain-
Correspondence
Bablu Kumar Dhar, Department of Business, able development capabilities of heavily polluting companies; there is a significant
Daffodil International University, Dhaka,
positive correlation between the quality of social responsibility information disclo-
Bangladesh.
Email: drbablukumardhar@gmail.com sure and the sustainable development capabilities of heavily polluting companies; the
quality of social responsibility information disclosure can be positively adjusted the
relationship between the implementation of green accounting and the sustainable
development capabilities of heavily polluting companies.

KEYWORDS
heavily polluting companies, implementation of green accounting, social responsibility
disclosure, sustainable development

1 | I N T RO DU CT I O N their investment in corporate social responsibility (CSR) strategies

Environmental protection goals such as climate change, reusing
waste materials, and protecting the planet should be the major con-
cerns of organizations seeking sustainable development. Sustain-
ability and sustainable development are currently viewed as issues
of concern by society due to high levels of pollution and the mea-
sures taken, which often fail to prove their effectiveness. Sustain-
able and responsible development must be ingrained into the
company's culture, and its policies, actions, and beliefs must all be
in line with the company's values (Artene et al., 2020). Hence,
companies have begun informing investors of their financial and
nonfinancial impacts on social and environmental issues alongside
© 2020 by the authors; licensee Growing Science, Canada. This is an open access article
distributed under the terms and conditions of the Creative Commons Attribution (CC-BY)
license (http://creativecommons.org/licenses/by/4.0/).
(García-Sánchez et al., 2020).
The punishment of unreasonable development methods of time
and the exchange of environment for the economy is the most direct
but fiercest counterattack made by the great persecution of the natu-
ral environment. Among the textile industry of Bangladesh, the knit-
wear and ready-made garments make the industry top of the country.
Rather than textile industry, pharmaceuticals and chemicals, paper
and printing, leather and footwear, steel industry, foods allied, energy,
and cement industries have immense contribution in the economic
development as well as environment pollution of Bangladesh (Masum
et al., 2019; Paik et al., 2017).
The environmental pollution incident has sounded the alarm for
the sustainable development of Bangladeshi companies. As the coun-
try continues to promulgate laws and regulations on environmental
protection, and the public pays more and more attention to environ-
mental protection, the standards for their quality of life have also

Corp Soc Responsib Environ Manag. 2021;1–8. wileyonlinelibrary.com/journal/csr © 2021 ERP Environment and John Wiley & Sons Ltd. 1
2 DHAR ET AL.
been continuously improved, and higher development standards have
been put forward for heavy-polluting companies at this stage (Hoque
et al., 2018). Green accounting integrates environmental costs into
the business financial results of a company. It not only shows the
development of the company in terms of economic benefits but also
reflects the environmental costs that the company needs to pay for
economic benefits. At the same time, it is disclosed in corporate social
responsibility information (Dyduch & Krasodomska, 2017). It is neces-
sary to disclose this aspect of information fully and truthfully. Effec-
tively alleviate the asymmetry information between the company and
external stakeholders, and relevant stakeholders, it is possible to
obtain more accurate information based on the content of green
accounting statements of the companies. More valuable investment
and financing decisions have a significant impact on the sustainable
development of heavily polluting companies (Arrive & Feng, 2018).
The paper explores the connection between implementation of
green accounting and sustainable development in heavily polluting
firms by analyzing their social responsibility disclosure. Based on the
empirical data of heavily polluting companies in Bangladesh from
2010 to 2019, this paper tries to develop an empirical analysis of the
application effect of green accounting in the sustainable development
of heavily polluting companies. Hence, the study needs to find out,
what impact does the implementation of green accounting have on
the sustainable development of polluting companies? Does the higher
the level of fulfillment of social responsibility, the better the sustain-
ability of the company? Under the influence of social responsibility,
what will happen to the relationship between the implementation of
green accounting and the sustainable development of heavily pollut-
ing companies? With these questions, the empirical data of the heavy-
polluting companies of Bangladesh is the research object to carry out
the current research.
2 | THEORETICAL ANALYSIS AND
R E S E A RC H H Y P O T H E S I S
2.1 | Green accounting and sustainable
development
After addressing green accounting in 1971 by Parker, there is a lot of
progress made regarding the study of green accounting with the
scope of evaluating the social performance of finances, financial activ-
ities, and disclosure of social responsibility (Gonzalez & Mendoza,
2020). The concept of green accounting involves the assessment of
environmental costs and resource losses within a country. To assist
enterprises in understanding and managing the tradeoffs between
environmental goals and traditional economic goals, green accounting
was developed (Maama & Appiah, 2019). It has become necessary for
enterprises to develop methods for promoting green incentives for
both the present and the future through green accounting
(Bebbington et al., 2017; Gupta & Vegelin, 2016). By studying and
growing green into a big picture, Green Accounting promotes a sus-
tainable future for enterprises.
Alternatively, sustainable development requires companies to
consider their performance objectives within three perspectives:
financial, environmental, and social (Abdulrahman, 2021). Globally,
sustainable development is a concern on the national level. In an era
of economic growth, depletion of non-renewable resources is leading
to a shortage of fuels and energy, which contributes to a breakdown
of the natural environment, increasing natural disasters (Ye
et al., 2020). Therefore, integrating sustainable development into eco-
nomic growth, environmental protection, and social security has
become a pressing necessity for the world.
The fundamental phenomenon has caused many heavy-polluting
companies in Bangladesh to obtain better economic benefits, mainly
through space-for-time and environment-for-economy, which has
contributed to GDP growth. Being a fast-developing nation,
Bangladesh has been focusing on environmental protection since the
1995 through Bangladesh Environment Protection Act (Saha, 2019).
According to the Act, organizations must consider the nature, technol-
ogy, and scale of their business, services, and products. Also, organiza-
tions must include forecast environmental impacts, treat wastes to
minimize these impacts, and implementation of environmental protec-
tion measures in their annual report (Masum et al., 2019). Hence, the
study proposes the following hypothesis:
Hypothesis H1. There is a significant positive correla-
tion between the implementation of green accounting
and the sustainable development of heavily polluting
companies in Bangladesh.
2.2 | Disclosure of corporate social responsibility
disclosure and sustainable development
Since the introduction of corporate social responsibility in the 1950s,
 ska-Kopcewicz
it has been the focus of many scholars (Liczman
et al., 2019; Tibiletti et al., 2021). As a result, whether companies
should perform social responsibilities has also been divided into two
groups, support, and opposition. However, with the continuous pro-
gress of society, some companies do not assume social responsibility.
The undesirable consequences brought about gradually unified the
opinions of the two factions. That is, as an economic entity, compa-
nies need to draw many critical resources from society to obtain
development (Estrada-Vidal et al., 2020). Since the development of
companies cannot be separated from the support of social resources,
they need to bear specific social responsibility is inevitable.
The excellent performance of social responsibilities can enable
companies to obtain strategic essential development resources,
enhance the trust of consumers in the company, and at the same time
attract more attention to investors. The fulfillment of corporate social
responsibility is inevitable in the form of charitable donations but also
environmental protection, job-solving and other aspects (Liang &
Renneboog, 2017). Among the heavily polluting companies, it has
been an extensive economic development model for a long time,
which has caused severe damage to the environment (Vuong
DHAR ET AL.
et al., 2021), resulting in the increasing frequency of extreme weather
such as haze which has severely impacted the quality of life of the
people. Therefore, companies that only focus on economic develop-
ment ignores the concentrated expression of the fulfillment of social
responsibilities.
Despite the fact that CSR is widely practiced internationally in
order to support sustainable development, Bangladesh is lagging
behind. Bangladesh is far behind the world standard in terms of its
practice, which shows the potential for improvement (Paik et al.,
2017). In recent years, companies have started integrating CSR as a
strategic investment into their core business strategy as well as man-
agement instruments and operations aimed at developing Bangladesh
sustainably (Hoque et al., 2018). Therefore, the study proposes the
following hypothesis:
Hypothesis H2. There is a significant positive correla-
tion between the quality of social responsibility informa-
tion disclosure and the sustainable development of
heavily polluting companies in Bangladesh.
2.3 | Impact of social responsibility disclosure
between the implementation of green accounting and
sustainable development
With the continuous development of the concept of corporate social
responsibility, the traditional view of charitable donations of the com-
panies have quietly changed. Of course, social responsibility does not
only include charitable donations but also includes more content
(Taylor et al., 2018). As an accounting treatment method actively pro-
motes by the country, green accounting can effectively improve the
sustainable development ability of the enterprise after effective
implementation. The enterprise should strengthen the implementation
of green accounting, which is also a corporate social responsibility
that embedded with performance (Broman & Robèrt, 2017; Nekhili,
Nagati, Chtioui, & Rebolledo, 2017).
The disclosure of corporate social responsibility information is a
concrete manifestation of the performance of social. The higher the
quality of disclosure, the better the performance of corporate social
responsibility (Platonova et al., 2018). The more essential benefits can
be received the attention of people to imply green accounting and
promote corporate sustainability. The quality of social responsibility
information disclosure can positively regulate the implementation of
green accounting and the sustainability of polluting companies.
Corporate social responsibility reporting, sustainable develop-
ment and use of green accounting have traditionally been considered
largely within the scope of western economics (Marco-Fondevila
et al., 2018). Despite this, many large corporations claim to have taken
steps to improve their environmental and social performance within
developing countries following highly publicized incidents and heavy
environmental pollution. Taking stakeholder theory as a lens, CSR
reporting, sustainable development and developing green economy
through green accounting have been started to introduce in
3
Bangladesh, like other developing countries, over the last few years
(Belal, 2016). Consequently, the study addresses the following
hypothesis:
Hypothesis H3. The quality of social responsibility
information disclosure significantly enhances the corre-
lation between the implementation of green accounting
and the sustainable development of heavily polluting
companies.
3 | RESEARCH METHODOLOGY
3.1 | Sample selection
Heavy pollution companies in Bangladesh are the initial research
objects of the current research. According to the “Guidelines for Envi-
ronmental Information Disclosure of Listed Companies” published by
the Ministry of Environmental & Forests of Bangladesh, the heavy
pollution industries involved in this article include thermal power,
steel, cement, dockyard, electrolytic aluminum, coal, chemical, petro-
chemical, building materials, papermaking, pharmacy, fermentation,
textile, tanning, and mining industries.
The data for this study were gathered solely from the annual
reports. The study has taken a sample of the total number of 604 listed
companies (total 22 sectors) of the Dhaka Stock Exchange (DSE) and
have selected 12 sectors (7 Cement, 5 Ceramics, 42 Engineering,
20 Food and Allied, 22 Fuel and Power, 3 Jute, 4 Paper and Printing,
31 Pharmaceuticals and Chemicals, 6 Tannery Industries, 56 Textile,
4 Real Estate, and 12 Miscellaneous) from the total number of listed
sectors. In order to ensure the reliability and authenticity of the
research data, the initial research samples were screened as follows:
first, the companies whose property rights were not clearly defined
during the research period were deleted; second, the companies with
abnormal values of the asset–liability ratio, companies that have not
fully disclosed vital indicators such as finance, and finally companies
that have not disclosed social responsibility information have been
deleted. Finally, 212 valid research samples were obtained, involving a
total of 509 data from 2010 to 2019. In terms of data acquisition, the
number of all variables, the data, are obtained from the annual reports
of listed companies. At the same time, to avoid the influence of out-
liers in the data on the robustness of the research, all continuous vari-
ables have been narrowed down at 1% and 99% quantiles.
3.2 | Variables
3.2.1 | Dependent variable
For heavy-polluting companies, sustainable development needs to be
measured in many aspects. Drawing on the research results of Bellucci
et al. (2020), it is possible to develop business sustainability from the
three aspects of business sustainability, environmental sustainability,
4 DHAR ET AL.

and element sustainability. The sustainable development ability is
measured, so the sustainable development ability is used as the
dependent variable. It is represented by the symbol ESD. It is mea-
sured employing multi-level fuzzy comprehensive evaluation and
principal component analysis. The specific evaluation index system
and weights are shown in Table 1. Table 1 can calculate the final
score of sustainable development for the company. The higher the
score, the stronger the sustainable development ability of the
company.
3.2.2 | Independent variables
Green accounting, also known as environmental accounting, is an
interdisciplinary subject of environmental science and accounting.
Compared with traditional accounting, the same measurement scale is
currency, but green accounting is to confirm, record and measure cur-
rency following environmental laws and regulations. Provide
environment-related information for companies to make reasonable
development decisions. To achieve effective cost control and ade-
quate protection of the environment, and to promote sustainable
development of companies. However, because the implementation of
green accounting is still in the initial stage of development in
Bangladesh, the implementation of green accounting is taken as an
independent variable, represented by the symbol GC, when the com-
pany implements green accounting, assign GC to 1; otherwise, GC
Assign a value of 0.
the corporate social responsibility information disclosure quality score
issued by Runling Global Responsibility Rating Company. At the same
time, the score is processed for the aspect data. Take the logarithm,
the larger the logarithm, the higher the quality of corporate social
responsibility information disclosure.
3.2.4 | Control variables
Comprehensively consider the influencing factors of the sustainable
development capabilities of the company, draw on previous related
research results, and select the company size, asset–liability ratio,
internal control effectiveness, audit quality, return on total assets,
property rights, and education level of senior management as control
variables. Moreover, introduce two dummy variables of annual and
industry to control its influence. The definition and description of all
variables are shown in Table 2.
3.3 | Model construction
In order to analyze the relationship between the implementation of
green accounting and the company's sustainable development capa-
bility to verify Hypothesis H1. With the company's sustainable devel-
opment capability as the dependent variable and green accounting
implementation as the independent variable, the following multiple
linear regression model is constructed:
Model 1:

3.2.3 | Adjusted variables ESD ¼ β0 þ β1 GC þ β2 Lev þ β3 ICQ þ β4 ROA þ β5 AQ þ β6 Edu þ β7 State

þ β8 Size þ ΣYear þ ΣInd þ ε

The development of an enterprise is inseparable from the support of

society. In turn, the excellent performance of corporate social respon-
sibility can also promote the continuous progress of society. For com-
panies, although the excellent performance of social responsibility
requires a specific cost, it can bring more critical development
resources. Therefore, the quality of social responsibility information
disclosure is regarded as corporate social responsibility. The substitu-
tion variable is represented by the symbol CSR, and it is measured by
In order to analyze the relationship between the quality of
social responsibility information disclosure and the company's sus-
tainable development capability to verify Hypothesis H2. With the
company's sustainable development capability as the dependent
variable and the social responsibility information disclosure quality
as the independent variable, the following multiple linearity regres-
sion model is constructed:

TABLE 1 Evaluation index of enterprise sustainable development (ESD) system

Variables Indicators Value Indicators Value

Sustainability Business sustainability 0.077 Development ability 0.469
Corporate culture 0.083
Operating ability 0.485
Environmental sustainability 0.554 Environmental protection cost input 0.061
Pollutant emissions 0.628
Product's environmental impact 0.275
Element sustainability 0.387 Human capital 0.486
Continuous innovation ability 0.080
Resource utilization efficiency 0.455
DHAR ET AL. 5

TABLE 2 Variables at a glance

Type Name Symbol Description

Dependent Sustainability ESD Constructing a comprehensive index evaluation system
as shown in Table 1 and making strategies, the larger
the teaching value, the better the sustainable
development ability of the company
Independent Implementation of green accounting GC When the company implements green accounting,
assign GC to 1, otherwise assign GC to 0
Moderator Social responsibility disclosure CSR Use the corporate social responsibility performance
disclosure quality score issued by Runling Bad Ball
Responsibility Rating Company to measure. The
higher the teaching value, the higher the corporate
social responsibility information disclosure quality.
Control variable Asset-liability ratio Lev Total assets at the end of tern / Total liabilities
Effectiveness of internal control ICQ The internal control guidance of listed companies and
divide it by 100. The larger the teaching value, the
better the effectiveness of the internal control
system.
Audit quality AQ The value is 1 when standard audit opinion is obtained,
otherwise 0
Return on total assets ROA Net profit/Average total assets
Education level of executives Edu Senior management degree is assigned a value of 3 for
bachelor degree and above, 2 for junior college, and
1 for junior college or lower
Property right State State-owned enterprise is 1, otherwise 0
Enterprise size Size Total assets at the end of the period
Year Year Time frame
Industry Ind Type of the Industry

variable. The quality of responsible information disclosure is the moderat-

TABLE 3 Descriptive statistics
ing variable, and the following multiple linear regression model is
Variables N Min Mean Mid Max SD constructed:
ESD 212 0.07 0.43 0.40 0.80 1.78 Model 3:
GC 212 0.01 0.55 1.01 1.54 0.19
CSR 212 1.39 5.99 5.00 11.29 1.24 ESD ¼ β0 þ β1 GC þ β2 CSR þ β3 ðGC  CSRÞ þ β4 Lev þ β5 ICQ þ β6 ROA
þ β7 AQ þ β8 Edu þ β9 State þ β10 Size þ ΣYear þ ΣInd þ ε
Size 212 18.83 23.80 24.53 25.64 0.18
Lev 212 0.01 0.43 0.35 0.78 1.19
ICQ 212 1.10 5.30 5.10 7.94 1.28
AQ 212 0.01 0.89 1.12 1.50 0.27
4 | R E S U L T S OF TH E R E S E A R C H
ROA 212 0.54 0.09 0.06 0.57 1.79
State 212 0.02 0.56 1.02 1.09 0.43
4.1 | Descriptive statistics
Edu 212 1.03 2.30 2.35 2.91 0.64

The descriptive statistics results are shown in Table 3.

Model 2:
ESD ¼ β0 þ β1 CSR þ β2 Lev þ β3 ICQ þ β4 ROA þ β5 AQ þ β6 Edu
þ β7 State þ β8 Size þ ΣYear þ ΣInd þ ε
In order to analyze the relationship between the quality of social
responsibility information disclosure, the implementation of green
accounting, and the sustainability of the company to verify
Hypothesis H3, the sustainability of the company is the dependent vari-
able, and the implementation of green accounting is the independent
The endogenous law between variable data, through the degree of
dispersion, can analyze the differences between individual companies.
The average value of ESD of sustainable development capacity is 0.43,
indicating that heavy polluting companies of Bangladesh have relatively
weak sustainable development capacity. The extreme values are 0.07
and 0.80, respectively, indicating that individual companies have inferior
sustainable development capacity and some companies that remarkably
perform capacity. On an average, 55% companies implement green
accounting as the mean value is 0.55 and the extreme values are 0.01
and 1.54, respectively. The proportion of heavily polluting companies of
6 DHAR ET AL.

Bangladesh implement green accounting is more than half; the average
value of CSR on the quality of social responsibility information disclosure
is 5.99, and the extreme values are 1.39 and 11.29, respectively. The
standard deviation reached 1.24, indicating that heavy polluting compa-
nies have yet to disclose social responsibility information.
Furthermore, the degree of dispersion between individuals is rela-
tively high; the average value of the size of the enterprise is very close to
the median, indicating that the sample companies are similar in the number
of assets; the average value of the asset-liability ratio Lev is 0.43, indicating
that environmental awareness is increasing at this stage. In an environ-
ment where environmental protection technology requires a large amount
of investment, heavily polluting companies are subject to more severe
financing constraints, resulting in the irrational capital structure of these
companies; the average ICQ of internal control effectiveness is 5.30. The
result indicates that the sample companies have achieved initial results in
the construction of internal control systems, but the vast dispersion
between the extreme values also shows that different companies have a
massive gap in the effectiveness of internal control. The average value of
audit quality AQ is 0.898, indicating that 89.8% of companies have
obtained standard audit opinions at this stage. However, a high proportion
of standard audit opinions, is inconsistent with frequently exposed finan-
cial fraud incidents, which means that at this stage, external audit institu-
tions still need to strengthen the protection of audit independence. The
average ROA of total assets is 0.09, indicating that the sample companies
have relatively good profitability, but the extreme degree of dispersion is
high, indicating that the sample companies have a massive gap in profit-
ability. The average value of the state of property rights is 0.568, which
indicates that the proportion of the sample companies in Bangladesh has
reached 56.8%; the education level of senior management is Edu Mean
2.30, indicating that most of the executives of the sample companies have
a bachelor degree or above.
4.2 | Correlation analysis
From the correlation analysis results in Table 4, there is no
multicollinearity problem between the variables. It provides support
for the subsequent multiple linear regression analysis. In terms of vari-
able relationships, the green accounting implementation of GC and
social responsibility information disclosure CSR have passed the sig-
nificance test at the 1% level between the corporate sustainability
capability ESD and shows a positive correlation, which is consistent
with the Hypothesis H1 and Hypothesis H2 of this article. Are consis-
tent. In terms of control variables, the higher the debt-to-asset ratio,
the worse sustainable development capabilities of the companies; the
size of the company, the effectiveness of internal control, audit qual-
ity, return on total assets and the level of education senior manage-
ment are all significantly different from sustainable development
capabilities the companies have a positive correlation. At the same
time, state-owned companies have better sustainable development
capabilities. The main reason is that state-owned companies not only
bear the responsibility for economic growth, but also shoulder more
social responsibilities, and have more reliable motivations and require-
ments for environmental protection.
4.3 | Regression analysis
The regression analysis results are shown in Table 5.
In the regression analysis of model 1, the regression coefficient
between green accounting implementation GC and corporate sustain-
ability (ESD) is 0.50, and it has passed the significance test at the 1%
level, indicating that green accounting implementation and corporate
sustainability. There is a significant positive correlation between them,
which provides further support and verification for Hypothesis H1.
After the implementation of green accounting, although the unit of
measurement is still currency, the purpose of the environmental laws
and regulations based on it is to realize better the harmonious
development of the environment and the economy. Therefore, the
implementation of green accounting promotes enhancing the environ-
mental performance of companies can effectively enhance their sus-
tainable development capabilities.
In the regression analysis of Model 2, the regression coefficient
between CSR and corporate sustainability ESD is 0.53, and it has

TABLE 4 Correlation analysis

ESD GC CSR Size Lev ICQ AQ ROA State Edu

ESD 1
GC 0.425*** 1
CSR 0.419*** 0.437*** 1
*** *
Size 0.138 0.119 0.137** 1
Lev 0.167*** 0.338*** 0.315*** 0.103** 1
ICQ 0.297 ***
0.347 ***
0.374 ***
0.134 **
0.366*** 1
AQ 0.288*** 0.355*** 0.378*** 0.132** 0.447*** 0.490*** 1
ROA 0.163 ***
0.316 **
0.277 ***
0.302 **
0.398 ***
0.344 ***
0.411*** 1
State 0.322** 0.388*** 0.198*** 0.098** 0.347*** 0.226** 0.322*** 0.412* 1
** *** *** ** *** *** ***
Edu 0.278 0.317 0.106 0.144 0.106 0.138 0.223 0.164 0.136* 1

***, **, and * indicate the significance level of the variable relationship is 1%, 5%, and 10% respectively.
DHAR ET AL. 7

TABLE 5 Regression analysis coefficient is higher than the regression coefficient between the green

Variable Model 1 Model 2 Model 3 accounting implementation and the company's sustainable develop-
ment capability in Model 1. The result indicates that the quality of
ESD 0.615*** 0.623*** 0.682***
(3.12) (3.21) (3.28) social responsibility information disclosure has significantly enhanced

GC 0.491 ***
0.494 *** the green accounting implementation and the company's sustainable
(2.24) (2.34) development for the correlation between sustainable development
CSR 0.524 ***
0.505 *** capabilities. Hence, Hypothesis H3 is better verified and supported.
(2.68) (2.62)
CSR*GC 0.544***
(2.84) 5 | CONC LU SIONS
Size 0.345* 0.359* 0.362*
(1.33) (1.45) (1.51) This article takes the heavily polluting companies in Bangladesh from
Lev 0.579*** 0.621*** 0.601*** 2010 to 2019 as the research object and studies the impact of green
(3.01) (3.22) (3.11)
accounting implementation and social responsibility information on the
ICQ 0.534*** 0.542*** 0.586***
sustainable development of companies. Through empirical and theoretical
(2.67) (2.71) (2.87)
research, the following main conclusions are drawn: the implementation
AQ 0.535*** 0.540*** 0.548***
of green accounting can significantly improve the sustainable develop-
(2.59) (2.67) (2.73)
ment capabilities of heavily polluting companies; there is a significant posi-
ROA 0.493*** 0.497*** 0.520***
(2.39) (2.47) (2.59) tive correlation between the quality of social responsibility information
* * * disclosure and the sustainable development capabilities of heavily pollut-
State 0.352 0.341 0.356
(1.54) (1.34) (1.56) ing companies; the quality of social responsibility information disclosure

Edu 0.444 ***

0.455 ***
0.476 *** significantly enhances the implementation of green accounting and the
(2.01) (2.14) (2.32) sustainable development of heavily polluting companies.
Adj_R2 0.299 0.289 0.309 The critical task of the collective development of the environment
F 78.39 ***
78.22 78.92 *** and the economy, the higher the quality of its social responsibility

N 212 212 212
Year control control control
Industry control control control
***, **, and * indicate the significance level of the variable relationship is
1%, 5%, and 10%, respectively. The value in the number estimates the t
value.
passed the significance test at the 1% level, indicating that the corpo-
rate social responsibility information There is a significant positive
correlation between sustainable development capabilities, which pro-
vides further support and verification for Hypothesis H2. Companies
need to absorb essential development resources from society, and
they need to sell the products they produce to society to obtain eco-
nomic benefits. Therefore, companies not only shoulder the responsi-
bility of economic development but also need to perform better social
responsibilities. The better the performance of corporate social
responsibility, it will effectively improve the quality of the disclosure
of social responsibility information, thereby attracting more attention
from the society and obtaining a more extensive range of develop-
ment resources, which is conducive to the realization of sustainable
development. The improvement of its sustainable development capa-
bility is a matter, of course.
In the regression analysis of Model 3, green accounting imple-
mentation of GC and social responsibility information disclosure qual-
ity CSR still shows a significant positive correlation at the 1% level
between corporate sustainability ESD. After introducing the cross-
multiplying item CSR*GC of the two, it is found that the regression
information disclosure, the more conducive to the implementation of
green accounting. This will further ensure and improve the company's
sustainable development capabilities. In the regression analysis of the
control variables, the larger the scale of the enterprise, the higher
the ability to bear and resist risks. At the same time, the more capable
it is to make continuous investment in profitable projects with a posi-
tive net present value, and it will also be more able to obtain external
investors. The ability of sustainable development is relatively high;
high-quality internal control and external auditing, as important com-
ponents of corporate governance, can promote the continuous
improvement of the ability of sustainable development. The higher
the education level of executives, the more they pay attention to the
economy and the environment. The greater the sustainable develop-
ment capabilities of the companies; the higher the debt-to-asset ratio,
the greater the profits of the companies will be used to repay debts
under pressure from relevant creditors. Without sufficient funds for
investment and environmental protection, sustainable development
cannot be achieved without the development of social responsibility.
AC KNOW LEDG EME NT S
This research received no external funding.
OR CID
Bablu Kumar Dhar https://orcid.org/0000-0001-8768-8634
RE FE RE NCE S
Abdulrahman, D. M. (2021). The role of environmental accounting in sus-
tainable development to conserve natural resources. Psychology and
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How to cite this article: Dhar, B. K., Sarkar, S. M., & Ayittey, F.
K. (2021). Impact of social responsibility disclosure between
implementation of green accounting and sustainable
development: A study on heavily polluting companies in
Bangladesh. Corporate Social Responsibility and Environmental
Management, 1–8. https://doi.org/10.1002/csr.2174